Which of the following statements is correct?
A. If the profit-maximizing rule is fulfilled, it necessarily follows that the cost-minimization rule
is being fulfilled.
B. The profit-maximizing and the cost-minimizing rules are such that the fulfilling of one has
no bearing on the fulfilling of the other.
C. If the profit-maximizing rule is fulfilled, the cost-minimization rule may or may not be
fulfilled.
D. If the cost-minimization rule is fulfilled, it necessarily follows that the profit-maximizing rule
is being fulfilled.
Answer: A
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Replacing the simple Keynesian consumption function with the function based on the permanent-income hypothesis results in a ________ short-run multiplier, implying a ________ stable private economy
A) higher, more B) higher, less C) lower, more D) lower, less
The United States was able to produce temporarily outside its production possibilities curve for several years during World War II by doing which of the following?
A. Recruiting housewives to work in tank and airplane factories. B. Convincing workers who qualified for retirement to put off retirement. C. Pressing older machinery and equipment into use. D. Expansion of the work week. E. All of the choices are true